From Marc to Market:
Overview: The reprieve from the angst of the trade war lasted a couple of days but it has returned following Beijing's actions against Boeing and the US requiring Nvidia to get export licenses to sell its H20 chip, designed to meet the previous restrictions on China. ASML's disappointing orders and results adds the concerns. The US celebrating the number of countries that seek tariff relief, but the EU was pessimistic on how the talks are going and BOJ's Ueda comments about the economic shock suggests the central bank may cut this year's growth forecast. The dollar is broadly lower. The Swiss franc continues to lead the charge, while no G10 currencies is up less than about 0.25% in late European morning turnover. Most emerging market currencies are also higher, even the Chinese yuan. China reported stronger than expected Q1 growth, which is taken with the proverbial grain of salt.
Asia Pacific market and Europe's Stoxx 600 are lower for the first time this week. US index futures are also lower led by the Nasdaq, which finished slightly lower yesterday. The futures are below where it finished last week. The 10-year Japanese Government Bond yield fell nearly 10 bp (to near 1.25%). Benchmark yield in Europe is mostly 1-2 bp lower. The softer than expected CPI may be helping Gilts outperform. The 10-year yield is off three basis points, and fueled by the franc's gains, the 10-year Swiss yield is almost four basis points lower near 0.38%. The 10-year US Treasury yield is flat near 4.34%. It peaked last Friday near 4.60%. Gold surged to a new record near $3318. June WTI is firm. It recovered from a brief dip below $60 for the first time this week and is near yesterday's high (~$61.60).
USD: The Dollar Index is giving back yesterday's gains today, but last Friday's range (~99.00-100.75) remains key....
....MUCH MORE
The yuan, not included in the DXY, has been strengthening since April 8th:
(lower is stronger i.e. fewer yuan required to buy a buck)
